CHAPTER 171. FREIGHT RAIL DISTRICTS
TRANSPORTATION CODE
TITLE 5. RAILROADS
SUBTITLE I. SPECIAL DISTRICTS
CHAPTER 171. FREIGHT RAIL DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 171.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
Text of subdivision effective until April 01, 2011
(2) "Bonds" has the meaning assigned by Chapter 623, Acts of the
67th Legislature, Regular Session, 1981 (Article 6550c, Vernon's
Texas Civil Statutes).
Text of subdivision effective on April 01, 2011
(2) "Bonds" has the meaning assigned by Section 172.001.
(3) "District" means a freight rail district created under this
chapter.
Text of subdivision effective until April 01, 2011
(4) "Rail facilities" has the meaning assigned by Chapter 623,
Acts of the 67th Legislature, Regular Session, 1981 (Article
6550c, Vernon's Texas Civil Statutes), except that the term
includes property and interests necessary or convenient for the
provision of a nonrural rail transportation system.
Text of subdivision effective on April 01, 2011
(4) "Rail facilities" has the meaning assigned by Section
172.001, except that the term includes property and interests
necessary or convenient for the provision of a nonrural rail
transportation system.
Text of subdivision effective until April 01, 2011
(5) "Revenues" has the meaning assigned by Chapter 623, Acts of
the 67th Legislature, Regular Session, 1981 (Article 6550c,
Vernon's Texas Civil Statutes).
Text of subdivision effective on April 01, 2011
(5) "Revenue" has the meaning assigned by Section 172.001.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.03, eff. April 1, 2011.
Text of section effective until April 01, 2011
Sec. 171.002. APPLICABILITY OF RURAL RAIL TRANSPORTATION
DISTRICTS LAW. (a) Except as provided by this chapter, Sections
2-9, Chapter 623, Acts of the 67th Legislature, Regular Session,
1981 (Article 6550c, Vernon's Texas Civil Statutes), apply to a
district as if the district were created under that chapter.
(b) For purposes of applying Chapter 623, Acts of the 67th
Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
Civil Statutes), to a district created under this chapter, a
reference to "rail facilities" in Chapter 623 means "rail
facilities" as defined by Section 171.001.
(c) For purposes of applying Chapter 623, Acts of the 67th
Legislature, Regular Session, 1981 (Article 6550c, Vernon's Texas
Civil Statutes), to a district created under this chapter, a
reference in Chapter 623 to "eligible county" means a county that
created the district.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.04, eff. April 1, 2011.
Text of section effective on April 01, 2011
Sec. 171.002. APPLICABILITY OF RURAL RAIL TRANSPORTATION
DISTRICTS LAW. (a) Except as provided by this chapter, the
provisions of Chapter 172 other than Section 172.003 apply to a
district as if the district were created under that chapter.
(b) For purposes of applying Chapter 172 to a district created
under this chapter, a reference to "rail facilities" in Chapter
172 means "rail facilities" as defined by Section 171.001.
(c) For purposes of applying Chapter 172 to a district created
under this chapter, a reference in Chapter 172 to "eligible
county" means a county that created the district.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.04, eff. April 1, 2011.
SUBCHAPTER B. CREATION
Sec. 171.051. APPLICABILITY TO CERTAIN COUNTIES. A district may
be created only in a county with a population of 3.3 million or
more and counties adjacent to such a county.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.052. CREATION BY COUNTIES AND MUNICIPALITIES. (a) The
governing body of one or more counties and the most populous
municipality in the most populous county may by concurrent order
or ordinance create a district. At the time of creation, a
district must include:
(1) a county with a population of 3.3 million or more; and
(2) that municipality.
(b) The order or ordinance creating the district:
(1) must specify:
(A) the number of district directors and who appoints the
directors; and
(B) the method of selecting the board's presiding officer; and
(2) may specify terms and conditions that are not expressly
inconsistent with this chapter.
(c) If the most populous county in the district contains a
countywide navigation district and the presiding officer of the
navigation district is jointly appointed by that county and the
most populous municipality in that county, the order or ordinance
creating the district must specify that:
(1) the presiding officer of the navigation district is a
director of the freight rail district; and
(2) at least one director must be jointly appointed by the
mayors of the municipalities in the district, except for the
mayor of the most populous municipality in the most populous
county.
(d) The common law doctrine of incompatibility does not apply to
a director serving under Subsection (c)(1) with regard to the
director's service for the freight rail district or for the
navigation district.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Text of section as amended by Acts 2009, 81st Leg., R.S., Ch.
33, Sec. 1
For text of section as amended by Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.05, see other Sec. 171.053.
Text of section effective until April 01, 2011
Sec. 171.053. INTERMUNICIPAL COMMUTER RAIL DISTRICT POWERS. The
governing bodies of the county or counties and of the most
populous municipality in the most populous county may provide
that the district may exercise the powers of an intermunicipal
commuter rail district created under Article 6550c-1, Revised
Statutes, including the powers related to a commuter rail
facility and other types of passenger rail services, including
intercity rail services, by specifying in the concurrent order or
ordinance creating the district that those powers may be
exercised by the district.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
33, Sec. 1, eff. September 1, 2009.
Text of section as amended by Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.05
For text of section as amended by Acts 2009, 81st Leg., R.S., Ch.
33, Sec. 1, see other Sec. 171.053.
Text of section effective on April 01, 2011
Sec. 171.053. INTERMUNICIPAL COMMUTER RAIL DISTRICT POWERS. The
governing bodies of the county or counties and of the most
populous municipality in the most populous county may provide
that the district may exercise the powers of an intermunicipal
commuter rail district created under Chapter 173 or former
Article 6550c-1, Revised Statutes, including the powers related
to a commuter rail facility and other types of passenger rail
services, including intercity rail services, by specifying in the
concurrent order or ordinance creating the district that those
powers may be exercised by the district.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
33, Sec. 1, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.05, eff. April 1, 2011.
Sec. 171.054. DISTRICT TERRITORY. The district consists of the
territory of each county that created the district and the
territory of the most populous municipality in the most populous
county if that municipality's territory is located in more than
one county.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 171.101. COMPOSITION OF BOARD; PRESIDING OFFICER. The
board consists of directors, including a presiding officer, as
provided in the order or ordinance creating the district under
Section 171.052(b).
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.102. EX OFFICIO NONVOTING DIRECTOR; TEXAS
TRANSPORTATION COMMISSION. The Texas Transportation Commission
may appoint to the board a representative to serve as a nonvoting
ex officio director.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.103. CONFLICT OF INTEREST. Chapter 171, Local
Government Code, governs conflicts of interest for directors.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 171.151. REGIONAL MOBILITY AUTHORITY POWERS. A district
may exercise the transportation project powers of a regional
mobility authority under Chapter 370 for a transportation project
that is a freight rail facility.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.152. GENERAL CONTRACT POWERS. A district may contract
with any person, including:
(1) a county or municipality, including a county or municipality
that created the district;
(2) this state or any political subdivision of this state;
(3) the United States; or
(4) a railroad.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.153. EXERCISE OF POWERS IN OTHER COUNTIES. The
commissioners court of a county that is not in the district may
authorize the district to exercise its powers in that county if
that county is adjacent to a county that is in the district.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Text of section effective until April 01, 2011
Sec. 171.154. INTERMUNICIPAL COMMUTER RAIL POWERS. (a) The
district may exercise the powers of an intermunicipal commuter
rail district created under Article 6550c-1, Revised Statutes,
only if the concurrent order or ordinance creating the district
specifies that the district may exercise those powers. The order
or ordinance may not grant the district the power to impose a
tax.
(b) In the event of a conflict between this chapter and a power
granted by Article 6550c-1, Revised Statutes, this chapter
controls. In the event of a conflict between Article 6550c-1 and
Chapter 623, Acts of the 67th Legislature, Regular Session, 1981
(Article 6550c, Vernon's Texas Civil Statutes), Article 6550c
controls over Article 6550c-1.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.06, eff. April 1, 2011.
Text of section effective on April 01, 2011
Sec. 171.154. INTERMUNICIPAL COMMUTER RAIL POWERS. (a) The
district may exercise the powers of an intermunicipal commuter
rail district created under Chapter 173 or former Article
6550c-1, Revised Statutes, only if the concurrent order or
ordinance creating the district specifies that the district may
exercise those powers. The order or ordinance may not grant the
district the power to impose a tax.
(b) In the event of a conflict between this chapter and a power
granted by Chapter 173, this chapter controls. In the event of a
conflict between Chapter 173 and Chapter 172, Chapter 172
controls over Chapter 173.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.06, eff. April 1, 2011.
Sec. 171.155. MUNICIPAL LIMIT ON DISTRICT'S POWER OF EMINENT
DOMAIN. If the property to be condemned is located in the
corporate limits of one or more municipalities, the district may
exercise the power of eminent domain to condemn the property only
if each municipality in which the property is located consents to
the exercise of that power.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
SUBCHAPTER E. RELATIONSHIP BETWEEN DISTRICT AND AFFECTED
RAILROADS
Sec. 171.201. AGREEMENT WITH RAILROAD. (a) Before a district
may undertake a freight or commuter rail project that materially
affects the tracks, facilities, or other property of a railroad
that owns track in the district, the district and railroad must
enter into a written agreement regarding the scope, operational
impact, financing, and other elements of the project. The
district may not undertake the project unless the district and
the railroad agree on these terms.
(b) The agreement may include provisions for the railroad's
financial participation in the project according to the benefits
the railroad derives from the project.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.202. PRESERVATION OF REGULATORY STRUCTURE AND OWNERSHIP
RIGHTS. A district project may be conducted only in a manner
that preserves the existing rail industry regulatory structure
and railroad ownership rights.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.203. COMPETITIVE RELATIONSHIPS. The district may not
undertake a project that changes the existing competitive
relationships between and among railroads.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.204. SERVICE TO CUSTOMERS. The district may not
undertake a project that negatively affects a railroad's present
or future ability to provide consistent service to its customers.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.205. USE OF DISTRICT RAIL FACILITIES. This chapter
does not prohibit the district from authorizing multiple freight
railroads to operate on district rail facilities.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.206. LIMITATION ON EMINENT DOMAIN. The power of
eminent domain may not be exercised under this chapter to condemn
a right-of-way owned by a railroad.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.207. EXCEPTION; GRADE SEPARATION PROJECTS. This
subchapter does not apply to a rail-roadway or rail-rail grade
separation project.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
SUBCHAPTER F. FINANCIAL PROVISIONS
Text of section effective until April 01, 2011
Sec. 171.251. PLEDGE OF REVENUES. A district may secure and
pledge revenues derived from any source to secure the payment of
district bonds.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.07, eff. April 1, 2011.
Text of section effective on April 01, 2011
Sec. 171.251. PLEDGE OF REVENUE. A district may secure and
pledge revenue derived from any source to secure the payment of
district bonds.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.07, eff. April 1, 2011.
Sec. 171.252. PURCHASE CONTRACTS. Subchapter O, Chapter 60,
Water Code, as added by Chapter 307, Acts of the 78th
Legislature, Regular Session, 2003, applies to the district as if
the district were a navigation district under that subchapter.
For the purposes of applying that subchapter to the district
under this section, "commission" means the board.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.253. AD VALOREM AND SALES AND USE TAXES PROHIBITED. A
district may not impose an ad valorem tax or a sales and use tax.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.254. FEES CHARGED TO RAILROADS. (a) A district may
not impose a fee or other charge on a railroad unless the
railroad agrees to the fee or other charge.
(b) This section does not prohibit a railroad from voluntarily
contributing to the cost of rail facilities or prohibit the
district from charging for the use of a rail facility by a
railroad or other person.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.255. PORT TERMINAL RAILROAD ASSOCIATION RAIL
FACILITIES. The district may not spend money, including money
from state or federal grants, to purchase a rail facility
operated by a port terminal railroad.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Sec. 171.256. LOCAL GOVERNMENT FINANCING. (a) Section 8(d),
Article 6550c-1, Revised Statutes, relating to the limit on
payments made by a local government does not apply to a district
to which Section 171.053 applies.
(b) A district to which Section 171.053 applies may use money
paid to the district by a local government outside the territory
of the local government if the money is used for a public purpose
of the local government.
(c) A district to which Section 171.053 applies may pledge money
paid to the district by a local government to secure the payment
of a district debt.
Added by Acts 2009, 81st Leg., R.S., Ch.
33, Sec. 2, eff. September 1, 2009.
SUBCHAPTER G. WITHDRAWAL; DISSOLUTION
Sec. 171.301. WITHDRAWAL. (a) A county or municipality that
created the district may petition the board for approval to
withdraw from the district. The board may approve the petition
only if:
(1) the district has no outstanding bonds; or
(2) the district has debt other than bonds and the board finds
that the withdrawal of the county or municipality will not
materially affect the ability of the district to repay the debt.
(b) If the board approves the petition, the county or
municipality that withdrew from the district is not entitled to
appoint directors to the board. The remaining counties or
municipality by concurrent order or ordinance shall allocate
among themselves the authority of the withdrawing county or
municipality to appoint directors to the board.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Text of section effective until April 01, 2011
Sec. 171.302. DISSOLUTION. In addition to the dissolution
procedures provided by Chapter 623, Acts of the 67th Legislature,
Regular Session, 1981 (Article 6550c, Vernon's Texas Civil
Statutes), the board may dissolve a district if:
(1) all district liabilities have been paid or adequate
provision has been made for the payment of all liabilities;
(2) the district is not a party to any lawsuits or adequate
provision has been made for the satisfaction of any judgment or
order that may be entered against the district in a lawsuit to
which the district is a party; and
(3) the district has commitments from other governmental
entities to assume jurisdiction of all district rail facilities.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.08, eff. April 1, 2011.
Text of section effective on April 01, 2011
Sec. 171.302. DISSOLUTION. In addition to the dissolution
procedures provided by Chapter 172, the board may dissolve a
district if:
(1) all district liabilities have been paid or adequate
provision has been made for the payment of all liabilities;
(2) the district is not a party to any lawsuits or adequate
provision has been made for the satisfaction of any judgment or
order that may be entered against the district in a lawsuit to
which the district is a party; and
(3) the district has commitments from other governmental
entities to assume jurisdiction of all district rail facilities.
Added by Acts 2005, 79th Leg., Ch.
756, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
85, Sec. 4.08, eff. April 1, 2011.